On Wednesday, Gingko Bioworks Holdings Inc. (NYSE: DNA), one of Cathie Wood’s stocks, plummeted by around 17%. The tumble started after Scorpion Capital released a report on Wednesday that called Gingko Bioworks “A Collossal Scam”.
Gingko Bioworks Holdings Inc. specializes in synthetic biology and biotechnology. The company recently turned public after it merged with a particular acquisition company. The biotech company is also a holding in Cathie Wood’s Ark Innovation ETF, but the Wood magic also failed to prevent the company’s trends from going bearish after Scorpion Capital’s criticism!
To add to the already falling stock prices, a new report was released by Citron Research Editor Andrew Left. In the statement, he called the Gingko Bioworks ‘a scheme’. He emphasized that the company’s $24 billion valuations, done recently, is absurd. This is because it raised capital of roughly a $5 billion valuation.
Though this report could be nothing more than fodder to the bears, and Scorpion Capital might just be looking forward to making a profit out of the stock’s demise.
Investors might still want to closely follow how Cathie Wood and Ark Innovations ETF react to the reports. If she decides to close her stronghold in the start-up, it might worsen the situation for Gingko Bioworks Holdings Inc.
As of 6th October 2021 at 3:24 PM ET, the Gingko Bioworks Holdings Inc. (NYSE: DNA) traded at $10.01, which is in the red by –16.4%.